Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: April 11, 2016
Key Contacts
Back
Emerald Oil Inc files Chapter 11
Recently, oil and gas producer Emerald Oil Inc. announced that it had filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, Emerald became just the latest victim of the collapse and subsequent sluggish recovery of oil prices. As a result, the company officials stated that Emerald intends to seek an auction sale of its remaining assets.
Emerald Oil spirals into debt
In bankruptcy documents, Emerald’s Chief Financial Officer explained that the company has halted its exploration and extraction activities. Forty percent of its workforce was let go in the aftermath of the downturn, while the company struggled to refinance its debt load on four separate attempts. Its access to capital markets was limited, which significantly reduced its reserves and dramatically decreased its corporate value.
Following the submission of its bankruptcy petition, Emerald reported over $360 million in debts to $405 million in assets. Despite the recent rebound of oil prices, the company’s long-term outlook was still negative.
Emerald Oil’s reorganization plan
According to its bankruptcy petition, Emerald plans to seek an auction sale. Latium Group has submitted an offer to purchase the company, and will serve as the stalking horse bidder in the auction. In a statement, Emerald CEO McAndrew Rudisill explained that the executive team views Latium Group’s offer as the best option for the company to emerge from the bankruptcy process as a viable business.
Prior to the auction, Emerald plans to maintain normal business operations with a $20 million loan from Latium Group. This loan is subject to court approval, but the company believes it will enable it to maintain value for potential buyers.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For more related articles on oil companies filing for Bankruptcy, check out:
- Paragon Offshore Files for Chapter 11 Bankruptcy Protection
- Arch Coal Inc. files for Chapter 11 Bankruptcy Protection
- Swift Energy files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.